Tag Archives: eac and stocks correlation

I was reading an article from Fidelity called “Where to Look for Returns” and came across an interesting table I wanted to share with all of you:

For those of you looking to diversify your portfolios this appears to be a lot more difficult nowadays. It also appears that these high correlations are not going to change anytime in the near future. Furthermore, it is my belief that return enhancement via the effects of rebalancing (great article about rebalancing) may be reduced due to these high correlations.

Note: Personally, I use TIPS for portfolio diversification since historically (and currently) they still have the lowest correlation to equities.

Categories

Oscar Wilde:

"When I was young I thought that money was the most important thing in life; now that I am old I know that it is."

Peter Lynch:

"You should invest in several stocks because out of every five you pick, one will be very great, one will be really bad, and three will be OK."

"There are substantial rewards for adopting a regular routine of investing and following it no matter what, and additional rewards for buying more shares when most investors are scared into selling."

"Your investor's edge is not something you get from Wall Street experts. It's something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand."

"If you don't study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards."

Recent Posts

Jerry Seinfeld:

"I'm not an investor. People always tell me, you should have your money working for you. I've decided I'll do the work. I'm gonna let the money relax. You know what I mean? 'Cause you send your money out there - working for you - a lot of times, it gets fired. You go back there, 'What happened? I had my money. It was here, it was working for me.' 'Yeah, I remember your money. Showing up late. Taking time off. We had to let him go.'"

"Of course the market fluctuates. Everybody knows that. I just got fluctuated out of $4,000."

Charlie Munger:

"I think gold is a great thing to sew into your garments if you're a Jewish family in Vienna in 1939, but I think civilized people don't buy gold. They invest in productive businesses."

"All intelligent investing is value investing - acquiring more than you are paying for. You must value the business in order to value the stock."

"It’s not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it - who look and sift the world for a mispriced bet - that they can occasionally find one. And the wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time they don't. It's just that simple."

"If all you succeed in doing in life is getting rich by buying little pieces of paper, it's a failed life. Life is more than being shrewd in wealth accumulation."

"The best thing a human being can do is to help another human being know more"